Closed in NY at $1.5797, the rate having seen extended recovery highs of $1.5817 as the dollar came under pressure post FOMC announcement, dipping back to $1.5790 ahead of the close. Rate slipped back to $1.5792 in early Asia, with recovery attempts countered around $1.5805 through the Asian morning before rate managed to step its way through the NY high and on to $1.5826 ahead of the European open. Move hits the recently mentioned short term target at $1.5820, with rate now seen meeting resistance from those that had been looking to short any rally extension into $1.5820/40. Rate trades around $1.5813 into Europe. Euro-sterling, which had seen extended highs of stg0.86065 Tuesday consolidated this move between stg0.8577/92 after closing the NY session at stg0.8586. Nationwide house prices the early domestic interest at 0700GMT, with some attention expected on SNB reserve data at 0800GMT to what percentage it holds in sterling. Cable offers to $1.5840, more 1.5850/55 ahead of $1.5870. Support $1.5790/85, with stops sub $1.5780. A break opens a deeper move toward $1.5765/60. Ongoing dividend related demand for sterling at fixes, as well as a general dollar sell signal could offset any residual euro-sterling demand.
EasyForexNews Research Team